Research Administration For Scientists COMP Tim Quigg Class 3: January 21 Federal Funding Instruments Contracts/Grants/Cooperative Agreements FAR Single Investigator/Multi-Department/Multi- Institution Proposals COMP

Types of Support COMP Federal Assistance Mandatory – block grants, formula-driven Discretionary – competitively awarded Modes of Support Grants – assistance Contracts – procurement/acquisition Cooperative Agreements – assistance but with strings attached

Grant – a legal instrument for transferring money, property, or services to the recipient in order to accomplish a public purpose of support or stimulation where there will be no substantial involvement between the federal agency and the recipient during performance. 31 U.S.C. 6304

COMP Grants Broad Agency Announcements (BAA), Program Solicitation Financial Assistance Award Made for stated purpose (proposal/award) Made for stated period of time (project period) Made to an organization in the name of a Principal Investigator (PI) No substantial programmatic involvement by awarding agency Funding may be annual, multi-year or for entire budget period Minimum of limiting conditions

Contract – an agreement, enforceable by law, between two or more competent parties, to do or not do something not prohibited by law, for a legal consideration. FAR defines a contract as a mutually binding legal relationship that obligates the seller to furnish supplies or services and the buyer to pay for them.

COMP Contracts RFP and IFB Mutually binding legal relationship that binds the seller to deliver certain specified goods or services (deliverables) in exchange for certain specified consideration (e.g., money) Terms are usually detailed and specific Activities frequently dictated by sponsor (buyer) Less latitude to modify scope of work and line-item expenditures Funding may be incremental, tied to work components, final payment (e.g. 10%) may be held till “acceptance” of deliverables Process governed by the FAR (Federal Acquisition Regulation)

COMP Contract Types Pays allowable costs to extent provided Contractor must have adequate accounting system to track applicable costs Contains limitation of costs clause (LOC) – government will only pay estimated costs Variations include: Cost-sharing (CSC) Cost-plus-incentive fee (CPIF) Cost-plus-fixed fee (CPFF) Cost-Reimbursement (CRC)

COMP Contract Types Fixed Price (FPC) Price-based, not cost-based Price defined in contract (by unit or deliverable) May be firm or adjustable (Economic circumstances, profit, etc.)

COMP Contract Types Job orders Task letters Basic ordering agreements Letter contracts Purchase orders – contract becomes effective upon written acceptance or actual performance

Contracting Process Purchase Request (Requisition) Requirements Authorization Administrative Detail Contract Office Solicitation Request for Quotation (RFQ) - Information Only (Standard Form 18) Request for Proposal (RFP) Other-than-sealed-bids (offers) Uniform contract format Negotiated procurement Bargaining Offerors may revise offer Awards made on quality and cost factors Technical excellence Management capabilities Personnel Qualifications Prior experience Contract Issued Invitation to Bids (IFB) Sealed Bids (offers) Uniform contract format Public opening Price and price-related factors considered

COMP Other Contract Issues Contracting Officer (CO) – an employee of the federal government with the authority to enter into, administer, and/or terminate contracts. (FAR 2.101) COR/COTR – assigned certain activities with authority delegated from CO. Modification – any written change in the terms of a contract (FAR ) Change orders Supplemental agreements Exercises of contract options Notices of termination

COMP Other Contract Issues For default – right of government to completely or partially terminate a contract because of the contractor’s actual or anticipated failure to perform its contractual obligations, (FAR ) For convenience – right of government to completely or partially terminate a contract because the CO determines that termination is in the government’s interest (FAR ) Termination

COMP Other Contract Issues Estimated Cost – anticipated cost of performance of a cost contract. Funding Increment – an amount of funding associated with a period of performance of a contract. Established Funding Limit – sum of all funding increments of a contract. Changes in Estimated Costs Descoping

COMP Other Contract Issues Contract – Acquired Property – property acquired by a contractor for performing a contract to which the government has title. Rights in Data – if the government has funded development of an item, component, or process, the government may gain unlimited rights to data. If development was at private expense to contractor, the government may gain only limited rights.

Cooperative Agreement – a legal instrument for transferring money, property, or services to the recipient in order to accomplish a public purpose of support or stimulation where substantial involvement is expected between the government agency and the recipient. 31 U.S.C. 6305

COMP Cooperative Agreements Financial Assistance Award Similar to grant except There is substantial programmatic involvement by awarding agency. Principal purpose is to transfer money or something of value to recipient in order to accomplish a public purpose.

COMP Cooperative Agreements Agencies have substantial freedom to structure the terms and conditions (T&Cs) Agencies must issue CA regulations Often differ from standard assistance regulations and may even resemble acquisition regulations

3 P’s – Patron (Grant): Partner (Co-op Agreement): Purchaser (Contract) Idea for the project is initiated by the investigator. No substantial involvement between the grantor and grantee. Grantor has no expectation of a specified service or end product Grant DISTINGUISHING CONTRACT, GRANTS AND COOPERATIVE AGREEMENTS Research Requirement Procurement Contract YES NO Principally for Public support Or stimulation Co-op Agreement (Substantial Relationship)

COMP Issues – Proposal Complexity Single Investigator Multiple Investigator/Same Department Responsibility/Work tasks Sharing budget (travel, RA’s, equipment) “Credit” for award Multiple Investigator/Multiple Department Sharing IDC (subaccounts) Differing expectations

COMP Issues – Proposal Complexity Multiple Institutions (all academic) Prime/SubK “Linked” proposals Multiple Institutions (academic and commercial) Cost vrs. Price-based

Assignment for Next Week: circulars/a021/a021.html